IRS Raises Retirement Contribution Limits, Boosting Savings

The Internal Revenue Service has announced new contribution limits for retirement accounts, effective from next year. Workers can now save up to $24,500 in 401(k) plans, a $1,000 increase from this year. Traditional IRA contributors can save up to $7,500, a $500 rise. These changes align with inflation and offer strategic tax savings opportunities. The new tax breaks from the One Big Beautiful Bill Act make it beneficial to lower taxable income with higher 401(k) contributions. Older workers, aged 50-59, can now save an extra $8,000 as a catch-up provision, potentially saving up to $32,500 next year.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.